Thursday and Friday are likely to be some of the busiest days of processing in 2020, with factories filling orders for next week’s Islamic festival of Eid al-Adha, which starts on Thursday 30 July and finishes on Monday 3 August.

Some factories were contemplating slaughtering on Saturday but it looks likely that they will now focus their attention on high throughput on Thursday, Friday and Monday.

The number of sheep coming on stream has increased significantly as farmers target the festival to move lambs. Factory appetite is strong but the scale of the increase has put some pressure on price. Quotes for Thursday have eased 10c/kg on average.

Kildare Chilling and Dawn Meats are quoting a base of €5.40/kg, with Kepak 5c/kg lower at €5.35/kg but similar on price by means of its 15c/kg quality assurance (QA) bonus. The two ICM plants in Camolin and Navan are quoting a base of €5.30/kg plus 10c/kg QA. Ballon Meats is quoting an all-in price of €5.50/kg.

Prices paid to sellers handling smaller numbers range from €5.45/kg to €5.55/kg with sellers handling higher numbers securing returns of €5.60/kg to €5.65/kg.

Producer groups and those supplying through similar platforms are receiving top prices of €5.65/kg to €5.75/kg or higher when all bonuses on conformation and allowances on transport are taken into account.

Strong demand

IFA sheep chair Sean Dennehy said: “Factories are driving hard to maximise the kill to meet very strong market demand and this must be matched on the price side for farmers. Some factories are looking to see if they can kill on Saturday.

“Factories are paying €5.60/kg to €5.70/kg with some top prices of €5.85/kg including bonuses.”

The strong appetite from factories in recent weeks is reflected in recent weeks’ kill figures. Last week’s kill was recorded at 67,563 head, which equates to an increase of 3,177 on the previous week. This includes 58,474 lambs and 8,577 ewes and rams, while there is still a small number of hoggets being slaughtered, with 511 head recorded.

The kill is 7,303 head higher than the corresponding week in 2019, bringing total throughput for the year to date to 78,732 head higher. There are differences between categories, with 59,363 extra lambs handled, 37,036 additional hoggets and 17,517 fewer ewes and rams.

Live exporters have also been active in the last 10 days for ram lambs and paying €2.40/kg to €2.50/kg. This will add to numbers removed from the system and help to reduce supplies coming on stream after the festival.

Some plants are focusing on the lamb kill this week and have less appetite for ewes. This leaves quotes ranging from €2.50/kg to €2.70/kg, with top prices ranging from €2.70/kg to €2.85/kg.

The trade in Northern Ireland is similar to the south. Agents purchasing for southern plants remain active and this is helping to underpin competition but stronger numbers have also come on to the market.

Prices have eased slightly and range from £4.70/kg to £4.80/kg or the equivalent of €5.16/kg to €5.27/kg. This price is exclusive of VAT, with the price Irish producers receive including 5.4% VAT. For comparison purposes a price of €5.50/kg to €5.70/kg in southern plants equates to €5.22/kg to €5.40/kg exclusive of VAT.